Could the Surge in Altcoin Deposits Signal the Start of an Altseason?

Key Insights:

• Altcoin inflows into Binance hit their highest marks in 18 months, indicating an altseason.
• Altcoins have a raging bullish trend based on stochastic signals and golden crosses.
• The historical cycles resemble the previous altseasons, which might mean a possible rally in 2025.

The recent activity of altcoin deposits into major exchanges, mainly Binance, has hit an 18-month peak. Last week, more than 45,000 transactions with altcoins on deposit were recorded, which is a sign of further turnover in the market.

That influx into altcoins can be a precursor to the upcoming altseason as market participants look to follow expansion by trying alternatives to Bitcoin.

Altcoin Inflows Surge to 18-Month High

The number of altcoin deposits on large exchanges has also shot up, with Binance reporting 45,000+ deposits in seven days. CryptoQuant reported that this was the largest altcoin inflow in 18 months.

Such sharp rises in transaction activity indicated that traders actively move altcoins to exchanges. This could be the first signal that altseason is approaching.

Such an increase in inflows is an illustration of the increased interest in altcoins. The traders appeared to be preparing for the possibility of volatility and potential price changes. This cycle was in line with previous altseasons where a price surge followed a major inflow.

More so, the increase in the altcoin deposits also indicated that investors are keen to trade, which could lead to an upward trend.

Stochastic Indicators Support Bullish Outlook

Furthermore, Trader Tardigrade’s analysis of the total market cap (excluding Bitcoin and Ethereum) revealed favorable conditions for altcoins. The Stochastic indicator showed that altcoins are currently oversold.

This typically signaled that a price rebound is imminent. According to Tardigrade, the recent formation of a support structure further confirmed that altcoins are primed for a breakout.

Altcoins will probably pick up a rally as the market comes out of oversold territory. There might also be a change in market dynamics wherein altcoins might begin to outperform Bitcoin, which is usually an indicator of altseason.

Golden Cross Patterns Suggest Altcoin Surge

Interestingly, another positive sign for altcoins is the appearance of “golden cross” patterns across major indices. In this trend, the 50-day moving average made a cross over of the 200-day moving average, which has many bullish possibilities.

Historical investigation indicated that these golden crosses are more likely to cause huge surges in the prices of altcoins.

Cryptocurrency analyst Kamran Asgdar noted the occurrence of the golden cross that was followed by massive rallies. He cited the historic parallel of the previous crossovers, during which altcoins experienced growth following such trends.

Such a technical indicator is a major indication that the altcoin market may experience additional gains, taking the price up and contributing to an altseason.

Market Cycles Mirror Past Altseasons

In the meantime, altcoin cycles follow a somewhat similar way, as it was in 2016/2017 and 2020/2021. According to crypto analyst Moustache, current market dynamics were playing out similarly to historic altseasons. Moustache predicted that the market is now at an accumulation rate as it was in the earlier years before huge rallies.

As it was observed in 2016/2017 and 2020/2021 cycles, the market consolidated before major upward movements. Altcoins typically experience surges after this period of accumulation, as they break resistance levels and gain market dominance.

The market is also facing a similar stage now, and the possibility of a repeat of the earlier rallies is high.

However, at press time,  the Altcoin Season Index stood at 37, indicating the market is still in Bitcoin season. Although it has improved from last month’s score of 28, it still falls far short of the 90-day peak of 87. Altcoin momentum is gradually increasing but remains below the threshold typically associated with an altseason.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.